UK set to be the second-fastest growing economy in the G7

Chris Papadopoullos was City A.M.'s economics reporter until February 2016.

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Chris Papadopoullos

Britain is still ahead of most developed countries (Source: Corbis)

The UK economy will be the second fastest growing in the G7 group of nations, an international economic group said yesterday.

The Organisation for Economic Cooperation and Development (OECD) is predicting growth of 2.6 per cent this year.

While the US is predicted to grow 3.1 per cent and the UK’s forecast marking a downgrade from an earlier one, Britain is still ahead of most developed countries.

“Lower oil prices and widespread monetary easing have brought the world economy to a turning point, with the potential for the acceleration of growth that has been needed in many countries,” said OECD chief economist Catherine Mann.

A slowdown in China is expected to continue. India is expected to be the fastest-growing major economy over the coming two years, while the outlook is worse for many commodity-based nations, with Brazil falling into recession.